Stay of Execution – How to Stop CCJ Enforcement Action Now!

Getting a stay of execution, or execution of stay should be considered where creditors are seeking to enforce a County Court Judgment (CCJ). To avoid legal complications from creditors or bailiffs, assess the situation immediately and seek help before the issue spirals out of control. Company Doctor is here for those in need – we will take a deep look at your finances and suggest the best choices to keep debt collectors away while helping you get back into profitability! This might include applying for a Stay of Execution so that payments may cease temporarily until you have stabilised.

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What is a stay of execution?

A Stay of Execution enables the Courts to postpone all County Court Judgements (CCJs) that have already been made against a company, allowing them adequate time to construct an appropriate payment plan or file for appeal and stop enforcement action.

When a limited company fails to pay their debt, creditors can request the help of High Court Enforcement Officers (HCEOs), popularly known as bailiffs. If necessary, bailiffs can confiscate assets from the company to satisfy any debts still outstanding in accordance with the enforcement process.

Companies can avoid the repercussions of a CCJ by obtaining a ‘stay of execution’, which temporarily prevents it from going forward and stops bailiffs appearing at their business premises for an agreed period. The stay of execution offers businesses an opportunity to evaluate their financial situation and possibly even obtain a full hearing on the debt, allowing them to negotiate a payment plan. This much needed extra time can prove invaluable in helping companies get back on track with creditors.

How do you apply for a stay of execution?

When seeking a stay of execution, you will need to fill out Form N245. This form is designed to help create an approved payment plan that all creditors and High Court Enforcement Officers agree upon. However, depending on the negotiations between parties involved, this may not be necessary if everyone can reach mutual agreement without documentation.

If you’re experiencing financial difficulty, it’s recommended to consult with a professional Insolvency Practitioner. They can help provide insight into the best payment plan tailored for your needs and guide you through any negotiations. Our expert team of professionals are at the ready – don’t hesitate to get in touch as soon as you spot trouble on your horizon!

What to include in a stay of execution

Depending on the motive as to why you need a CCJ paused, filing for a stay of execution will differ. In many cases, an effective repayment plan must be constructed through the N245 form that outlines what your business can manage financially.

When submitting the necessary form, you will have to request a temporary stay of enforcement from the court which would delay any action that HCEOs may take while it is being processed. The judge handling your case will require them to formally accept or reject the repayment agreement before deciding on how they should move forward with retrieving their owed funds.

Is it possible for me to request a delay of payment if I contest the debt owed?

You can still request a stay of execution if you’re disputing your debt, regardless of whether or not HCEOs are involved. This will give you the precious time needed to compile evidence that supports your dispute claim and potentially keep creditors at bay for longer.

To successfully challenge the debt, you should fill out form N244 and include a thorough explanation for why you do not owe it. Additionally, be sure to provide supporting evidence in order to bolster your claim and increase its chances of success.

Is it possible to dispute a CCJ without obtaining one?

Although you can dispute a County Court Judgement without suspending its enforcement, this presents the risk of HCEOs coming to your property and taking away assets to pay what’s owed. In such an instance, you won’t have any ability to stop them from confiscating goods.

For your own welfare and benefit, it is wise to apply for a reprieve that gives you the space needed in order to:

1. Collect the funds necessary to settle the debt;
2. Establish a payment schedule that each parties agree upon, or
3. dispute the debt. 

Should you neglect to apply for a stay of execution, the courts are empowered to take legal action against you — regardless if the debt is legitimately owed or not.

When is a stay of execution issued, what happens?

With a stay of execution, your company will be able to take the necessary time (without court enforcement) either:

• To establish that you do not owe the debt, it is inaccurate, or was not conducted in accordance with proper protocols, request a full hearing.
• Establish a achievable payment plan that is agreeable to all involved, making transparent your intention and ability to pay off the debt in consistent installments over an established time frame.

If you opt to dispute the debt, ensure that your proof is solid and shows indisputably that you don’t owe it; otherwise legal action could be taken against you.

By electing to enter into a repayment plan, it is critical that you make timely payments in full; otherwise, HCEOs have the legal authority to attend your premises and seize assets for sale.

What happens if a stay of execution application is refused?

In the event your request for a stay of execution application is denied, you’ll be responsible for repaying any debts owed to creditors in accordance with court rules — potentially being required to pay it all back immediately.

If you are unable to repay the debt, no matter if it is in full or installments, perhaps you should consider other strategies for settling debts or ceasing your business. You must consult an insolvency practitioner and ascertain which formal insolvency process would be best suited for your particular interests.

If you need to put an end to your company and dissolve it from the Companies House register, along with any debt liability, then liquidation might be a prudent solution. Voluntary liquidation allows you to choose when and how your business will be dissolved – all assets are sold off and debts taken care of using whatever funds arise from those sales.

This may not be the preferred option, yet sometimes business owners have no other recourse but to pursue this route and avoid legal repercussions due to large debts that remain unpaid.

Get in touch with us at Company Doctor on 0800 169 1536 or leave an enquiry on our website if you are having cash flow problems. Our team can discuss the liquidation process and help your insolvent business.